Hutchinson Technology F3Q09 (Qtr End 6/28/09) Earnings Transcript

  • download
  • Print
  • Recommend
  • 0

2009-07-30 19:53:11.0

Tags: Needham & Co., Seeking Alpha, Hutchinson Technology Inc.

Question-and-Answer Session

Operator

Thank you Sir. We'll now begin the question and answer session. (Operator Instructions). Our first question is from the line of Rich Kugele with Needham & Company. Please go ahead.

Richard Kugele - Needham & Company

Thank you. Good afternoon. A couple quick questions I guess first just on the Asian operation, what element of the manufacturing process should we expect to come out of there?

And when you're talking about the CapEx number, does that include having to set up basically redundant capacity for a time or do you think you can move things over. I guess because you have excess capacity today.

Kathleen Skarvan

Hi Richard, Kathleen.

Richard Kugele - Needham & Company

Hi.

Kathleen Skarvan

We're focusing on the assembly portion of our process on our operations and at this point, we believe that we are in a position that we wouldn't need to install any redundant capacity that we have equipment that for beginning of that operation.

Richard Kugele - Needham & Company

And this would be a legacy TSA products?

Kathleen Skarvan

We haven't chosen that we will start with. But it would be the description of that type of product would be something that is mature, that we might find is stable and so most likely to have success and to ramp quickly.

Richard Kugele - Needham & Company

Will it require additional qualifications by the customers?

Kathleen Skarvan

I believe so.

Richard Kugele - Needham & Company

Then hopefully not as long as a normal qualification right?

Kathleen Skarvan

Oh no, interestingly Rich, we had to do re-qualification when we closed the fall facility (ph) and transferred products to our Hutchinson in our fair sight and it was quite transparent based on their willingness to help us out on that and do it very quickly.

Richard Kugele - Needham & Company

Okay. And then in terms of the Seagate, I don't know what they call it, I'd mentioned would be the long word. Do you think that the -- well let me ask you this, when that happens, did you do any additional restructurings or was everything already in motion and it has been, its been proven to be I guess sufficient in terms of the cost reduction?

Kathleen Skarvan

Yeah interestingly of that news came as we were preparing to do the additional restructuring and so we folded into that and so I don't anticipate that that's your question that we're looking anything further.

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement